HM Revenue and Customs’ recent decision to scrap its controversial Business Records Checks has been roundly welcomed.
The checks are a compliance procedure HMRC use to confirm a business is keeping sufficient information on its income and expenses to produce an accurate tax return. They have consistently been criticised for being ineffective and poorly targeted.
HMRC have however warned that scrapping Business Record Checks “does not mean HMRC are going to get laxer on tax compliance by small business”.
It therefore remains crucial for businesses of all sizes to keep records up to date and in good order and it is likely to become even more important as HMRC bring in digital tax accounts, which may require businesses to submit data more frequently.
In view of the above, if you would like any advice or support regarding the way in which you currently maintain your business records please give us a call.